Television digest with AM-FM reports (Jan-Dec 1951)

12 Request for “reasonable and equitable basis” for computation of telecasters’ excess profits tax (Vol. 7:9,21 24) was voiced July 27 by Fort Industry Co.’s John B. Poole, spokesman for TV Broadcasters Tax Committee before Senate Finance Committee. He pointed out that radio earnings of companies operating in both TV and radio during the 1946-49 base period for excess profits computation had been slashed by large losses suffered in pioneering TV operations, gave figures to show that “losses sustained in TV during this period so depressed normal profits derived from radio broadcasting that the average industry rate of return . . . declined from 24.9% in 1946 to 10.1% in 1949.” He urged Senators to approve S. 1861, introduced last week by Sen. Frear (D-Del.), which would permit any broadcaster deriving 30% or more of his income from TV to compute average base period income by multiplying December 1949 assets by (1) his ratio of income to assets in pre-TV 1946, or (2) by radio broadcasting’s industrywide rate of return for 1946 (24.9%) — whichever is greater. Effect of proposal would be to allow telecasters a rate of profit comparable to that of radio broadcasters before subjecting them to excess profits tax. Senate committee is considering tax proposals in connection with Housepassed revenue bill (H.R. 4475). Ford Motor Co.’s library of 16mm films is being made available to TV stations, rental free, through its 6 Film Library branches in Dearborn, Mich. (Earle Harger, distribution supervisor), and in New York, Washington, Chicago, Kansas City, Richmond, Cal., where catalogs are available. Seven films have full TV clearance, namely. The American Cowboy, The Big Race, Canyon Country, Men of Gloucester, Pride of Workmanship, Southern Highlanders, Driver Education Series. Films are 20 or 30 minutes, with exception of driving series which comprises six 10-min. shorts. “All other films listed in the catalog,” states Mr. Harger, “can be televised without the use of the sound track. With these, other background music can be dubbed in, or a commentary approximating that on the sound track can be given in the studio.” Westinghouse will sponsor live college football games this fall under National Collegiate Athletic Assn’s “controlled TV experiment,” NCAA’s TV committee announced July 24. Financial details weren’t revealed, and according to NCAA ruling Westinghouse will deal individually with some 40 colleges whose games will be televised. In complicated 10-week “experimental” schedule, each area will be blacked out for 3 Saturdays, no team will be televised m.ore than twice and Westinghouse will assist in research to determine effects of TV. About 50 stations will carry contests. Network plans haven’t been announced, but on 2 Saturdays entire interconnected TV hookup will be used, on others there will be regional and sectional hookups. Deal was made through Ketchum, MacLeod & Grove agency, Pittsburgh. Time Inc. now lukewarm about acquiring TV rights to Democratic and Republican national conventions next summer (Vol. 7:28), but other sponsors may continue trying. Trade reports had Chicago Tribune’s Col. McCormick objecting to Time-Life tieup — they’re politically opposed. So far as GOP is concerned, decision on principle of sponsorship (from which it’s thought $1,000,000 might be derived) must be decided by 20-member convention arrangements committee, to be appointed by Chairman Gabrielson in September. July 1 sets-in-use figure for Tulsa is 77,200, up 3000 from June 1. Revised Los Angeles total shows 1,002,000 as of July 1, an increase of 2000 from the even 1,000,000 given in NBC Research figures last week (Vol. 7:29). Another TV station and 3 AM stations received approval to begin construction under NPA’s building control Order M-4 (Vol. 7:19-20,22,27,29) during week ended July 19. WTOP-TV, Washington, got go-ahead to build addition to studio building, to cost about $16,350. Two AM grantees not yet on air received OK from NPA — V/LEA, Hornell, N. Y., to build radio station at $21,100; WCMY, Streator, 111., transmitter building at $6400; WLBB, Carrollton, Ga., already on air, authorized to build station costing $24,900. Other authorizations have been made by NPA field offices, but so far only actions announced have been those by Washington office. There is no record of denial of any broadcaster’s application to date. Three applications for new TV outlets filed with FCC this week came from St. Louis Amusement Co., subsidiary of big Fanchon & Marco talent booking fii-m, seeking Channel 11 in that city; WEAU, Eau Claire, Wis. (same interests as WEBC, Duluth, and WISC, Madison, and other stations, with Eau Claire Press and Leader as 24% stockholder), Channel 13; KRIC, Beaumont, Tex. (Beaumont Enterjrrise and Journal), Channel 6. [For further details, see TV Addenda 13-C herewith; for complete list of all pending TV applications, see TV Faetbook No. 13 with Addenda to date.] New DuMont TV Center in Manhattan, to be partially occupied Oct. 1, is remodeled 7-stoi’y Central Opera House at 205 E. 67th St., which will house “largest and most modern video studios ever constructed under one roof.” Five studios for live telecasts, 2 for coordinating film and remote programs, all program and engineering facilities, will be contained in 1,000,000 sq. ft. interior. Engineering chief Rodney D. Chipp is supervising equipment installation. Thompson Starrett Co. is doing construction work. Coast-to-coast TV network is still due “by year’s end,” according to AT&T. Regarding July 25 Variety story to effect that hookup is planned for September, AT&T spokesman said: “Our engineers sometimes work miracles, but I haven’t heard any of them mention a date as early as September. Within 30 days, we think we’ll be able to predict the date with reasonable accuracy.” Variety reported President Ti'uman v/ill keynote inaugural hookup featuring big-name Hollywood and New York talent. Appropriation of $6,116,500 for FCC for year ending June 30, 1952, was agreed upon this week by Senate-House conferees. Commission had asked for $6,575,000; Senate bill had authorized $6,233,300, House bill $6,000,000. During July 20 FCC-industry conference on freeze-ending procedures (Vol. 7:29), FCC Chairman Coy warned that cut to $6,000,000 “could be translated into loss of 100 manyears” with consequent adverse impact on quick end to fi'eeze. Freeze lift in U. S. Territories, subject of FCC report due soon, is considered probable. Principal complication is fact educational channel resei-vation issue hasn’t been finally settled, presumably won’t be until final decision on all freeze issues. At present, there are no applications from Territories. TV Sialion & Network Nap New Television Map of the United States, in color, revised to July 15, 1951, showing locations and lists of all operating TV stations with present and projected (1951-52) network routes, was made available with each copy of our TV Faetbook No. IS. It’s 22x34-in., suitable for wall or desk, usable as working outline. Demand for this map has been so great that we’ve ordered re-run, can offer extra copies at $1 each — or 50^ each in quantities of 20 or more.